85-1-210. Disposal of property by department. In addition to the powers conferred upon the department to sell, lease, or otherwise dispose of water for the purpose of irrigation, development of power, watering of stock, or other purposes, the department may sell, lease, or otherwise dispose of water from its waterworks systems for public, domestic, industrial, and other uses and for fire protection. The department may sell or otherwise dispose of a water project, after the discharge of all of the bonds issued to finance the construction or acquisition of the project, if any, and of all interest on the bonds, costs, and expenses incurred in connection with any action or proceeding by or on behalf of the holders of the bonds. Except for a water project for which no water purchase contracts are managed by the department and for which no money is collected by the department, the department shall make a determination of the market value of a water project prior to its sale or other disposition. The department’s determination of market value must consider all liens, encumbrances, and other limitations on the water project.